By Sharon Makiti

The United Nations Secretary-General, Antonio Guterres, called on governments worldwide to support and strengthen entrepreneurial ecosystems for cooperatives, citing their significant potential in accelerating the achievement of the 2030 Agenda for Sustainable Development.

The call comes in the wake of the release of the 2023 UN Secretary General’s report on cooperatives in social development, which underscores the importance of an entrepreneurial approach to empower cooperatives and enhance economic and social well-being.
The report, which follows the 2021 General Assembly Resolution 76/135, outlines key policies and actions to assist cooperatives in realizing their full potential in supporting Member States to achieve the Sustainable Development Goals (SDGs). These actions include providing decent jobs, eradicating poverty, and promoting environmental sustainability.

The UN’s cooperative entrepreneurial ecosystem approach encompasses five pivotal actions aimed at bolstering the role of cooperatives in global development.
Firstly, it emphasizes the importance of establishing a robust policy and regulatory framework that creates an enabling environment for cooperative enterprises. Additionally, the approach focuses on empowering cooperative members through education and skills development, ensuring they are well-equipped to contribute effectively.
Cultivating a cooperative mindset and values is another key aspect, fostering an atmosphere of trust, fairness, and solidarity within these organizations. Access to financial resources is also prioritized, ensuring that cooperatives have the means to invest and grow.

Lastly, the UN encourages cooperatives to strengthen collaboration by building networks and partnerships, enabling them to pool resources and collectively address shared challenges, thereby enhancing their overall impact on social and economic well-being.
Secretary-General Antonio Guterres praised the role of cooperatives in promoting sustainable development across three dimensions social development, economic development, and environmental protection. However, he notes that despite being recognized as key partners for sustainable development, cooperatives still play a relatively small role in overall economic and social policies, given their vast potential contribution.

The report further offers four essential recommendations for Member States to enhance their support for cooperatives and promote sustainable development.
First, it advocates the adoption of an Entrepreneurial Ecosystem Approach, emphasizing the importance of evidence-based policies and fostering an environment conducive to cooperative growth.

Secondly, the report underscores the significance of comprehensive and internationally comparable Data Collection to gauge the impact of cooperatives on economic and social development, especially in the context of achieving the Sustainable Development Goals (SDGs).
Furthermore, it encourages Member States to integrate cooperatives into their National Development Plans, SDG reporting processes, and consultations on social and economic policies, thereby ensuring that cooperatives are an integral part of the nation’s development strategy.

Lastly, the report recommends that governments extend Policy Support by offering policy analysis, technical assistance, and capacity-building initiatives to facilitate the sustainable expansion of cooperatives, thereby advancing their role in promoting equitable and enduring development.
For decades, the United Nations has recognized cooperatives as vital partners in enhancing social development and achieving the SDGs. Since the 1950s, the UN General Assembly has adopted resolutions addressing cooperatives’ role in social development, with a systematic review every two years since 1992.
The 2023 report serves as a comprehensive examination of the implementation of these resolutions, emphasizing the continuing importance of cooperatives in fostering economic resilience and social well-being. Notably, it builds upon the 2021 report in which the UN Secretary-General acknowledged the instrumental role of cooperatives in the global recovery strategy following the COVID-19 pandemic.

In a historic move in April 2023, the United Nations approved its first-ever resolution focused on promoting the social and solidarity economy for sustainable development. This resolution underscores the UN’s commitment to harnessing the power of cooperatives to address pressing global challenges, such as poverty reduction, climate action, and inclusive economic growth.

The report’s findings highlight the capacity of cooperatives to empower marginalized communities, stimulate entrepreneurship, and contribute to the realization of the SDGs. Furthermore, it calls for increased investment in cooperative enterprises, policy support, and global partnerships to unlock their full potential.
This report not only reaffirms the UN’s recognition of cooperatives as catalysts for social progress but also signals a renewed commitment to harnessing their collective strength in pursuit of a more equitable and sustainable world.

By Sharon Makiti

The United Nations describes the term gender as the economic, social, and cultural attributes and opportunities associated with being male or female.

Gender qualities therefore are a social construct, that can be recreated in any form. Where there is gender equality, both men and women enjoy equal treatment in terms of access to shared resources, benefits, and opportunities.

Cooperatives are guided by seven principles, among them the principle of voluntary and open membership, which aims at eliminating discrimination of any form, including on sexual orientation grounds.
Major strides have been taken in terms of policy formulation, creating awareness as well as public training by the government, rights groups, and SACCOs towards promoting gender equality.

For instance, most SACCOs apply the one-third gender policy in their management and governance. This has given women the opportunity to contribute valuably towards the growth, development, and sustainability of SACCOs on different levels. SACCOs have also ensured that investment into them through savings as well as uptake of various products and services is equally rewarded.

However, more still needs to be done to provide a level field for men and women economically, socially, and culturally. This is because when there is gender inequality, women will most likely bear the brunt.
More deliberate awareness and training on what gender equality is and why it is fundamental and relevant to SACCOs needs to be done. This will help lay a solid foundation of information to give women a strong voice to stand up for themselves against any form of discrimination.

Also, SACCOs hold member education events regularly, deliberate efforts need to be made to point out and address gender issues. This will increase public knowledge and acceptance of gender inequalities and spur goodwill in addressing them. At this age and time, it should not be uncommon for a woman to be at the helm of a giant SACCO.
Additionally, gender mainstreaming should be promoted in the everyday activities of the SACCO. For instance, it can be made a rule that a board or supervisory committee of a SACCO will not be complete without a certain number of women leaders.

Moreover, more women need to be involved in major SACCO events as chief guests, keynote speakers, educators, mentors, and so forth, in a bid to acknowledge and recognize those who have already broken the glass ceiling and mentor and encourage others. This will also help deal with existing unconscious biases against women leaders and increase their visibility, making the space in the top leadership conducive.

The majority of the major concerns on gender inequality are as a result of minor inequalities that were not addressed. SACCOs need to pioneer the stemming of these gender biases as they arise. Deliberate efforts need to be made to make SACCOs conducive spaces where women can be empowered and thrive to beat cultural, social, and economic stereotypes against them.

By Sharon Makiti

In a resounding declaration of growth and commitment, Yetu SACCO officially unveiled its latest jewel in the financial crown, the Kitengela branch. 

The new branch sets the stage for a financial adventure that transcends borders and promises to reshape the landscape of community finance, with promises of friendly services, impressive dividends, and a digital future. 

Yetu SACCO chairman, Mr. Mark Gitonga extended a hearty welcome to new members across the divide, saying that Yetu SACCO’s Kitengela branch is more than a new location; it’s a beacon of financial inclusion and opportunity. 

In his address, Mr. Gitonga introduced Yetu SACCO as a friendly financial institution, emphasizing its commitment to establishing a warm and welcoming atmosphere for all. 

Highlighting the SACCO’s robust financial position, Mr. Gitonga assured members that liquidity levels are high, making funds readily available. He underscored the efficiency of the loan approval and disbursement process, noting that approved loans are swiftly allocated within minutes or a few hours.

He also expressed pride in the qualifications, skills, and experience of the SACCO’s dedicated staff. He emphasized their readiness to cater to the diverse needs of members, ensuring that financial products are tailored to suit individual requirements.

He encouraged members to invest with Yetu SACCO, citing the impressive dividend returns. Mr Gitonga credited the high dividends to the exceptional management skills exhibited by the management team, directors, and staff.

The Kajiado County Government representative, during a speech welcoming the establishment of the new branch, emphasized the importance of tailoring financial products to the local pastoralist community while underlining the County Government’s commitment to supporting the SACCO’s expansion efforts.

In his speech read by the County representative Mr Daniel Motompa, the chief guest Mr. Patrick Kilemi, the Principal Secretary (PS) in the Ministry of Co-operatives and Micro, Small & Medium Enterprises (MSMEs) Development commended the Yetu SACCO for its exceptional performance in recent years. 

He noted that the SACCO’s strategy of increasing its branch network and offering attractive financial products had yielded positive results. In particular, he highlighted impressive statistics, including deposits of Sh1.9 billion from over 66,000 members, a loan portfolio of Sh.3.3 billion, and a reported turnover of Sh789 million in 2022.

Mr. Kilemi also reiterated the need for sustainability in SACCO operations, cautioning against overly attractive dividend payouts that could compromise long-term stability. He pledged the State Department’s commitment to addressing challenges in the cooperative sector, including unhealthy competition, non-remittance, weak governance, and cybercrime, through a variety of interventions, including the Deposit Guarantee Fund and Shared Services.

The PS also referenced the recently concluded Africa Climate Summit 2023 in Nairobi. He encouraged Yetu SACCO to consider important lessons learned during the summit as they continue their operations.

The speech also drew attention to the importance of legislative reforms, including Sessional Paper No. 4 of 2020, the Co-operative Bill 2022, and amendments to the SACCO Societies Act (SSA). These reforms are expected to enhance the safety of members’ funds and tackle issues such as corruption.

While officially declaring the branch open, the PS encouraged the SACCO to embrace digital transformation, acknowledging technology as the driving force in today’s business landscape.

The grand opening of Yetu SACCO’s Kitengela branch saw local business leaders expressing their excitement and satisfaction with the financial institution’s offerings. Addressing the gathering, former CEO Mr. John Mwiti shared his experiences with the SACCO and encouraged others to embrace it.

Mr. Mwiti, now an established businessman with ventures in both Mlolongo and Kitengela, commended Yetu SACCO for its role in supporting entrepreneurs like himself after retirement with competitive financial products and easily accessible loans.